National Research Corporation (NRC): History, Ownership, Mission, How It Works & Makes Money

As a financial decision-maker, how do you accurately value a company like National Research Corporation (NRC) that is navigating a mixed fiscal year, especially when its market capitalization stands at a solid $403.53 million as of November 2025? This healthcare intelligence firm, a leader in subscription-based patient experience analytics, is a crucial partner for hospitals, yet its Q3 2025 total revenue of $34.6 million grew only 2% sequentially, masking a slight year-over-year dip. Still, their operational efficiency is clear: Q3 2025 Adjusted EBITDA grew 11% year-over-year to $10.9 million, and their Total Recurring Contract Value (TRCV), a key forward-looking metric, hit $141.7 million, an 8% jump, which defintely underscores the strength of their customer retention. You need to understand how a business model built on data-driven insights translates into a commitment to shareholders, proven by the 2025 year-to-date return of $28.1 million through dividends and stock repurchases, to truly assess its long-term viability.

National Research Corporation (NRC) History

You need a clear picture of how National Research Corporation, now known as NRC Health, became a leader in healthcare experience management. The short answer is: they started early, focused on the patient, and consistently bought up key competitors to expand their data footprint. This evolution from a single-founder startup in the 80s to a public company with a $295 million market capitalization by September 2025 is a masterclass in strategic acquisition and niche focus.

Given Company's Founding Timeline

Year established

National Research Corporation was established in 1981, a time when the healthcare industry was just beginning to grapple with the need for systematic performance measurement and patient-centered care.

Original location

The company was founded and remains headquartered in Lincoln, Nebraska, maintaining a connection to the Midwest's pragmatic business culture.

Founding team members

The company's genesis is attributed to a single visionary: Michael D. Hays, who served as CEO for four decades and now acts as Chairman of the Board. Jona S. Raasch joined in 1988 as Vice-President and COO, bringing operational experience from A.C. Nielsen Corporation.

Initial capital/funding

Specific initial seed capital from 1981 is not publicly detailed, but the company's trajectory was fueled by organic growth before its 1997 Initial Public Offering (IPO). More recently, the company secured a $3.35 million post-IPO funding round in September 2017, followed by another $1 million post-IPO round in July 2018, demonstrating continued investment in their platform.

Given Company's Evolution Milestones

Given Company's Transformative Moments

NRC Health's journey is defintely defined by a few strategic pivots that moved them beyond simple survey data collection and into holistic experience management. The core idea has always been 'Human Understanding.'

• The IPO in 1997: Going public was the critical decision that unlocked the capital needed to execute a decade of aggressive, strategic acquisitions, which is how they built their comprehensive platform.
• The Picker Institute Acquisition (2001): Paying $4.1 million for this business was transformative. It integrated the foundational principles of patient-centered care-what patients want and what matters to them-directly into NRC's methodology, moving them past basic satisfaction scores.
• The Rebrand to NRC Health (2016): This was more than a name change; it formalized the shift from being a 'research corporation' to a 'health' partner focused on the entire patient and employee journey.
• The AI Integration (2025): The recent development of AI-enabled products, like the platform's intelligent analysis and AI-assisted smart responses, is the latest transformative step, aiming to automate service recovery and provide deeper insights for clients. This is how they stay ahead.

For the trailing twelve months leading up to September 30, 2025, the company reported revenue of $139 million and earnings per share (EPS) of $0.77, showing the financial impact of this long-term strategy. If you want to dig deeper into who is betting on this model, you should check out Exploring National Research Corporation (NRC) Investor Profile: Who's Buying and Why?

National Research Corporation (NRC) Ownership Structure

National Research Corporation's ownership structure is a fascinating mix, heavily weighted toward institutional investors and company insiders, which is typical for a specialized, publicly-traded healthcare technology firm.

This dual control means the company's strategy is steered by both large, long-term fund interests and the people who founded and run the business day-to-day, so you see a strong alignment between management and major shareholders.

National Research Corporation's Current Status

National Research Corporation, often referred to as NRC Health, is a publicly-traded entity on the NASDAQ stock exchange under the ticker symbol NRC. As of November 21, 2025, the company commands a market capitalization (market cap) of approximately $403.53 million, positioning it as a small-cap player in the Health Information Services sector.

The stock price recently closed at $17.66 per share, following a strong performance in the near-term. This public status ensures governance transparency, but the high insider ownership means a small group of people still hold significant voting power. You can dive deeper into the market sentiment by Exploring National Research Corporation (NRC) Investor Profile: Who's Buying and Why?

National Research Corporation's Ownership Breakdown

The company's stock is not widely held by the general public; instead, it is dominated by large funds and internal stakeholders. This concentration of ownership can lead to more stable, long-term decision-making, but it also reduces the float (the number of shares available for trading) which can increase volatility.

Here's the quick math on the shareholder breakdown, based on data available in November 2025:

Honesty, the most crucial detail here is that one entity, Property Trust Common, is cited as the largest individual shareholder, owning a massive 37.79% of the company, which is a huge block of control.

National Research Corporation's Leadership

The leadership team has seen significant changes in 2025, reflecting a strategic shift to modernize the platform and accelerate growth. The average tenure for the current management team is quite short, just 1.1 years, which points to a relatively new team steering the ship.

• Trent Green, Chief Executive Officer (CEO): Appointed effective June 1, 2025, succeeding the company's founder. He directly owns about 2.21% of the company's shares.
• Mike Hays, Chairman of the Board: The company founder and former CEO transitioned to the Chairman role in June 2025, ensuring defintely a smooth handover and continued institutional knowledge.
• Shane Harrison, Chief Financial Officer (CFO): Joined the executive team around September 25, 2025, bringing over 25 years of finance and strategy experience.
• Helen L. Hrdy, Chief Operating Officer (COO): A key executive whose compensation was recently adjusted with a grant of 100,000 shares of common stock in April 2025.
• Jordan N. Freeman, Chief Accounting Officer (CAO): Appointed in April 2025, she manages the company's accounting operations.

The new CEO and CFO appointments signal a fresh focus on evolving the go-to-market model and modernizing the technology platform, including integrating AI, which is a clear action point for the near-term.

National Research Corporation (NRC) Mission and Values

National Research Corporation's mission centers on transforming healthcare from a transactional service to a human-centered experience, using data to drive measurable improvements in patient and employee engagement.

National Research Corporation's Core Purpose

The company's cultural DNA is built on the belief that better patient outcomes and financial performance start with deep empathy, a concept they've trademarked. This focus is defintely a key differentiator in a complex, regulated industry.

Official Mission Statement

The core mission of National Research Corporation (NRC Health) is to guide improvements in healthcare experiences. This means helping healthcare organizations-from hospitals to long-term care facilities-to truly understand and enhance the experience for all stakeholders: patients, residents, and employees.

The mission breaks down into four clear areas:

• Understanding Needs: Comprehending the expectations of patients, residents, and employees.
• Driving Improvement: Translating data-driven insights into actionable strategies for better healthcare delivery.
• Enhancing Engagement: Fostering a culture among staff that directly improves patient care.
• Ensuring Quality: Using data to continuously improve the quality of healthcare services.

This mission directly supports the company's strong financial performance in recurring revenue; for instance, the Total Recurring Contract Value (TRCV) rose 8% year-over-year to $142 million in Q3 2025, showing that clients are paying for this mission-driven value.

Vision Statement

The company's vision is centered on being the leading provider of experience management solutions across the entire healthcare continuum. This isn't just about surveys; it's about continuous innovation in data analytics to shape the future of healthcare delivery.

This vision is supported by core values that guide their work:

• Client Focus: Dedication to meeting the unique needs of each client.
• Data-Driven Insights: A commitment to providing accurate, reliable, and actionable data.
• Innovation: Continuously seeking new and better ways to serve clients and improve healthcare.

To be fair, this focus is critical when you look at the Q2 2025 results: while revenue was $34,038,000, the company saw a Net Loss of $(106,000), which highlights the importance of their strategic vision to stabilize and grow in a challenging market. For a deeper dive into the numbers, check out Breaking Down National Research Corporation (NRC) Financial Health: Key Insights for Investors.

National Research Corporation Tagline

National Research Corporation's most prominent tagline, which is also a registered trademark, is Human Understanding®.

This isn't a catchy marketing phrase; it's the philosophical anchor for their entire platform, which uses advanced technology, including next-gen AI, to collect and analyze feedback in a more natural, human way. They are essentially saying that the deepest, most actionable insights come from truly understanding the human element in healthcare. This is why their customer retention has strengthened, with TRCV losses and down sells reduced by nearly 50%, as reported in Q3 2025. You can't argue with results like that.

National Research Corporation (NRC) How It Works

National Research Corporation, operating as NRC Health, delivers subscription-based healthcare intelligence, essentially turning raw patient and employee feedback into actionable data that hospitals use to improve care quality and financial performance. They make money by selling access to their proprietary platform and analytics, which helps clients drive patient loyalty and secure better reimbursement rates.

National Research Corporation's Product/Service Portfolio

National Research Corporation's Operational Framework

The core of the operation is a cloud-based, subscription-as-a-service (SaaS) model. This means revenue is highly predictable, which is why the Total Recurring Contract Value (TRCV) is a critical metric for us to watch. As of the third quarter of 2025, that TRCV stood at a robust $141.7 million, representing an 8% year-over-year increase.

Here's the quick math on how value is created: NRC Health collects massive amounts of data-patient surveys, employee sentiment, market trends-and then runs it through its proprietary, healthcare-specific Artificial Intelligence (AI) platform. This intelligent analysis transforms millions of data points into a handful of clear, prioritized actions for a hospital's management team. For example, the AI might flag that wait times in a specific Emergency Department are driving a 15% drop in patient satisfaction scores, which directly impacts public ratings and, ultimately, revenue.

The operational process focuses on a tight feedback loop:

• Collect: Gather experience data from patients, residents, and employees using a variety of digital and traditional methods.
• Analyze: Use AI to identify specific pain points and opportunities for service recovery.
• Enable: Deliver the insights through an intuitive dashboard, enabling staff to act quickly.
• Retain: Secure long-term contracts; customer retention has strengthened, with TRCV losses and down sells reduced by nearly 50% in recent quarters.

This recurring revenue model, which delivered LTM revenue of approximately $139.10 million through Q3 2025, is the engine. You can dive deeper into the financial health here: Breaking Down National Research Corporation (NRC) Financial Health: Key Insights for Investors.

National Research Corporation's Strategic Advantages

In the competitive healthcare analytics space, National Research Corporation holds a few distinct advantages that keep them ahead. They aren't just a survey company anymore; they are a data-to-action platform.

• Healthcare Exclusivity and Depth: Their singular focus on healthcare, spanning over four decades, gives them deep subject matter expertise that generalist tech firms can't match. They speak the language of Chief Medical Officers and hospital administrators, not just IT managers.
• High Efficiency Capital Structure: The company demonstrates exceptional efficiency in using shareholder funds, reflected in its impressive Return on Equity (ROE) of 66.87% as of November 2025. That's a strong signal of efficient management converting equity into profit.
• AI-Driven Automation: The integration of AI, specifically engineered for healthcare, allows for automation of low-value tasks like drafting service recovery responses, freeing up hospital staff to focus on human interaction. That's a clear value-add in a labor-constrained environment.
• Sticky Subscription Revenue: The high TRCV of $141.7 million means a large portion of their revenue base is locked in, providing financial stability and a buffer against economic downturns. That recurring revenue stream is a portfolio manager's dream.

What this estimate hides, still, is the risk of new entrants leveraging even more advanced, generalized AI models, but for now, NRC Health's domain expertise is a significant moat.

National Research Corporation (NRC) How It Makes Money

National Research Corporation (NRC) generates the vast majority of its revenue by providing subscription-based software and data analytics to healthcare organizations in the US and Canada, helping them measure and improve patient and employee experiences.

The core of the business is a Software-as-a-Service (SaaS) model, where clients pay recurring fees for access to NRC Health's 'Human Understanding®' solutions, which deliver critical insights and engagement tools.

National Research Corporation's Revenue Breakdown

The company's financial stability is rooted in its high proportion of recurring revenue, a key metric for any technology-driven business. The Total Recurring Contract Value (TRCV) is a critical indicator of future revenue, and as of the end of the third quarter of 2025, it stood at $141.7 million, an 8% year-over-year increase. This forward-looking metric is slightly higher than the trailing twelve months (TTM) revenue of $139.1 million, which strongly suggests that the recurring revenue stream makes up nearly all of the company's sales.

Business Economics

The economics of National Research Corporation are classic subscription-based analytics, built on high customer retention and expansion. The model is designed for long-term, sticky client relationships, not one-off projects. This is how they drive operating leverage (where revenue growth outpaces cost growth).

• Subscription Model: Revenue is recognized ratably over the contract term, providing highly predictable income streams. The focus is on long-term contracts, which is why the TRCV is a more defintely important metric than quarterly revenue alone.
• Net Retention: The company achieved its highest net retention rate since 2020 in Q3 2025, driven by strong cross-sell and upsell activity. This means existing clients are buying more services, which is the most profitable form of revenue growth.
• Pricing Strategy: Pricing is based on the value delivered-actionable data and insights-rather than just the volume of surveys. This allows for premium pricing, especially as healthcare systems face increasing pressure to improve patient and employee satisfaction scores.

Here's the quick math: if you can increase your Total Recurring Contract Value by 8% year-over-year, as NRC did, and simultaneously improve retention, you create a powerful flywheel effect that minimizes the need to constantly chase new clients just to stand still. You want to see that TRCV number keep climbing.

National Research Corporation's Financial Performance

Looking at the Q3 2025 results gives you a clear picture of the company's financial health and operational efficiency, despite a slight year-over-year revenue dip.

• Total Revenue (TTM): The trailing twelve months revenue as of Q3 2025 was approximately $139.1 million. Quarterly revenue for Q3 2025 was $34.6 million, which was a 2% sequential increase from Q2 2025.
• Adjusted EBITDA: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q3 2025 was $10.9 million, an 11% year-over-year increase. This translates to an Adjusted EBITDA Margin of 31%, showing strong operating leverage.
• Net Income: GAAP Net Income for Q3 2025 was $4.1 million, or $0.18 per diluted share. The company has maintained a 20-year streak of quarterly profitability, a sign of operational durability.
• Cash Flow: Cash flow from operations surged by 46% year-over-year to $13.8 million in Q3 2025, representing 40% of total revenue. This is a huge positive, indicating the high-quality, cash-generative nature of the subscription model.

The company is confident in its cash generation, returning a total of $28.1 million to shareholders in 2025 through dividends and stock repurchases, and raising the quarterly dividend by 33% to $0.16 per share, payable in January 2026. For a deeper dive into the metrics, you can check out Breaking Down National Research Corporation (NRC) Financial Health: Key Insights for Investors.

National Research Corporation (NRC) Market Position & Future Outlook

National Research Corporation (NRC) holds a strong, specialized position in the healthcare experience management (HXM) sector, leveraging its 2025 Best in KLAS Award to validate its platform's performance against larger rivals. The company's future trajectory hinges on converting its sequentially rising Total Recurring Contract Value (TRCV), which hit $141.7 million in the third quarter of 2025, into sustainable revenue growth, moving past recent dips in existing client revenue. The core strategy is clear: double down on AI-driven Human Understanding to simplify the complex patient-provider relationship.

You need to see where NRC stands against the competition, so let's look at the landscape. It's a two-horse race in the core patient experience measurement space, but new tech players are changing the rules.

Competitive Landscape

In the highly specialized HXM market, NRC Health and Press Ganey are the primary industry mainstays for standardized benchmarking, though exact market share percentages are proprietary. Press Ganey, with estimated annual revenue over $300 million, is generally considered the market share leader in sheer scale, but NRC Health's win of the 2025 Best in KLAS Award for Healthcare Experience Management indicates superior product performance and customer satisfaction in the eyes of healthcare providers. NRC's LTM revenue of $139.10 million (as of Q3 2025) positions it as the strongest challenger to the leader. Here's a quick map:

Opportunities & Challenges

The company is making strategic investments in technology and personnel, but you've got to watch the balance sheet. Here's the quick math on the near-term risks and opportunities.

Industry Position

NRC Health is defintely a high-quality performer, sitting at the intersection of healthcare IT and patient experience. The 2025 Best in KLAS Award for Healthcare Experience Management is a huge, independent validation that their technology and platform are top-tier, especially in an industry where data-driven insights are now essential for reimbursement and reputation.

• NRC is a leader in standardized patient surveying (CAHPS) and is now aggressively pushing into holistic experience management (HXM), which includes employee and consumer data.
• The company's Q3 2025 cash flow from operations surged by 46% year-over-year to $13.8 million, highlighting strong operational efficiency despite revenue challenges.
• The core competitive advantage is their unique, healthcare-specific AI platform, which translates complex multi-channel feedback into actionable, human-centered insights for providers.

This is a company focused on long-term contract stability, demonstrated by the 8% year-over-year growth in TRCV, but they must stabilize the revenue from their existing client base to truly capitalize on their market-leading product quality. You can dive deeper into the ownership structure here: Exploring National Research Corporation (NRC) Investor Profile: Who's Buying and Why?